ELASTICITY OF INDIVIDUAL INCOME TAX IN THE UNITED STATES: FURTHER EVIDENCE FROM CROSS-SECTION DATA

1991/03/01 by RATI RAM, Rati Ram
Economics, Econometrics and Finance · Social Sciences · #Fiscal Policy and Economic Growth #Taxation and Compliance Studies #Gender, Labor, and Family Dynamics

paper · doi:10.1086/ntj41788880

Abstract

Provides estimates of individual income tax elasticity in the U.S. by augmenting the nice cross-section model suggested by Tanzi (1969, 1976) through the addition of income-inequality and quadratic income terms. Results for the 1980's, based on income inequality data for 1979, show the same broad patterns as those for earlier periods, but the elasticity estimates are somewhat lower and seem to indicate a slight declining tendency.

Related

• The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review
• METHODOLOGICAL ISSUES IN MEASURING AND INTERPRETING TAXABLE INCOME ELASTICITIES
• Empirical Evidence of the Changing Pattern of Personal Income Taxes Paid by Income Classes, 1951-1962
• Income Mobility in the United States: New Evidence from Income Tax Data
• Pareto's Limits: Improving Inequality Estimates in America, 1917 to 1965